Booz Allen Hamilton contract for IT services awarded by GSA, valued at over $124M, highlights long-term engagements

Contract Overview

Contract Amount: $124,526,287 ($124.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2013-06-17

End Date: 2018-12-16

Contract Duration: 2,008 days

Daily Burn Rate: $62.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CL::IGF FOR CLOSELY ASSOCIATED

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $124.5 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CL::IGF FOR CLOSELY ASSOCIATED Key points: 1. Contract value indicates significant IT support requirements over its duration. 2. The 'Time and Materials' pricing structure may pose cost control challenges if not closely managed. 3. Awarded under full and open competition, suggesting a potentially competitive bidding process. 4. The contract's duration and value suggest a strategic partnership rather than a transactional service. 5. Focus on Computer Systems Design Services points to complex IT infrastructure needs. 6. The contract's performance period spans several years, allowing for sustained service delivery.

Value Assessment

Rating: good

The contract's value of over $124 million for Computer Systems Design Services is substantial, reflecting a significant IT support requirement. Benchmarking against similar large-scale IT service contracts awarded by the General Services Administration (GSA) would be necessary for a precise value-for-money assessment. However, the duration of the contract (over 5 years) suggests a potentially stable and predictable cost structure if managed effectively. The 'Time and Materials' pricing model, while common for evolving IT needs, requires diligent oversight to ensure costs remain aligned with the value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this significant IT services requirement. While not an exceptionally high number of bidders, full and open competition generally promotes price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open competition, which can lead to more cost-effective service delivery compared to sole-source or limited competition awards.

Public Impact

Federal agencies requiring advanced computer systems design and integration services benefit from this contract. The contract supports the modernization and maintenance of critical IT infrastructure. Services are likely delivered within Maryland, given the contract's place of performance. The contract supports a workforce skilled in IT systems design, development, and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing if not rigorously monitored.
Long contract duration could lead to vendor lock-in if not managed with exit strategies.
Dependence on a single contractor for critical IT systems design services.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Long-term contract allows for sustained support and knowledge transfer.
Contractor's established presence and experience in federal IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on Computer Systems Design Services. This is a broad and critical segment of the federal IT market, encompassing everything from software development and system integration to network design and cybersecurity. Spending in this area is consistently high across federal agencies as they strive to maintain and upgrade their technological capabilities. Comparable spending benchmarks would involve analyzing other large IT service contracts awarded by GSA and other agencies for similar system design and integration work.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, as a large prime contract awarded to a major IT services provider, there may be opportunities for small businesses to participate as subcontractors, depending on Booz Allen Hamilton's subcontracting plan and the specific needs of the task orders issued under this contract.

Oversight & Accountability

Oversight for this contract would primarily be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. Mechanisms likely include regular performance reviews, monitoring of task order progress, and financial oversight of expenditures. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

IT Professional Services
Computer Systems Design
IT Services
Information Technology
Management and Consulting Services

Risk Flags

Potential for cost overruns with Time and Materials pricing.
Long contract duration may limit flexibility with rapidly changing technology.
Dependence on a single contractor for critical IT systems.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $124.5 million to BOOZ ALLEN HAMILTON INC. IGF::CL::IGF FOR CLOSELY ASSOCIATED

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $124.5 million.

What is the period of performance?

Start: 2013-06-17. End: 2018-12-16.

What is Booz Allen Hamilton's track record with the federal government, particularly in IT services?

Booz Allen Hamilton Inc. is a long-standing and prominent contractor with the U.S. federal government, consistently securing a significant share of federal IT and professional services contracts. Their track record includes extensive experience across various agencies and service areas, including IT modernization, cybersecurity, data analytics, and systems engineering. They have a history of managing large, complex programs and delivering a wide range of IT solutions. While their extensive federal footprint suggests a deep understanding of government procurement and operational needs, it's also important to note that, like any large contractor, they have faced scrutiny and audits on specific contracts. Analyzing their performance on similar large IT service contracts, particularly those with 'Time and Materials' pricing, would provide further insight into their reliability and value delivery.

How does the $124M contract value compare to similar IT services contracts awarded by GSA?

A contract valued at over $124 million for Computer Systems Design Services awarded by the General Services Administration (GSA) is considered substantial. GSA awards numerous IT service contracts, and while this figure represents a significant investment, it is not uncommon for large-scale, multi-year IT modernization and support programs. To benchmark effectively, one would compare this contract's value against other 'full and open competition' awards for similar 'Computer Systems Design Services' (NAICS 541512) with durations of 5 years or more. The number of bidders (3 in this case) also provides context; a higher number of bidders typically correlates with more competitive pricing for similar contract values. Without specific comparative data on recent GSA IT contracts of identical scope and duration, it's challenging to definitively state if $124M represents excellent or merely fair value, but it signifies a major IT undertaking.

What are the primary risks associated with a 'Time and Materials' contract of this magnitude?

The primary risk associated with a 'Time and Materials' (T&M) contract of this magnitude ($124M+) is the potential for cost escalation if not managed rigorously. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can lead to cost overruns if project scope creeps, if labor hours are not efficiently utilized, or if hourly rates are not competitive. For the government, effective oversight is crucial to ensure that the labor provided is necessary, that the hours billed are accurate, and that the rates are fair market value. Without strong project management and detailed tracking of resources, the total cost can exceed initial estimates, diminishing the overall value for money. This necessitates robust monitoring by the contracting officer's representative (COR).

How does the 'full and open competition' award mechanism impact program effectiveness?

Awarding a contract through 'full and open competition' generally enhances program effectiveness by fostering a competitive environment that can lead to better solutions and more efficient service delivery. By allowing all responsible sources to bid, the government increases its chances of selecting a contractor with the most innovative approach, the best technical capabilities, and the most competitive pricing. This broad competition can drive contractors to propose higher quality services and more efficient methodologies to win the contract. Furthermore, the competitive pressure can incentivize the selected contractor to perform exceptionally well throughout the contract period to maintain a strong reputation for future opportunities. While this contract had 3 bidders, the principle of open competition still applies, aiming to secure the best possible outcome for the government's IT needs.

What historical spending patterns exist for Computer Systems Design Services (NAICS 541512) by the GSA?

The General Services Administration (GSA) is a major procurer of IT services, including Computer Systems Design Services (NAICS 541512). Historical spending patterns indicate a consistent and significant demand for these services across various federal agencies that GSA supports. GSA often acts as a central procurement agent, leveraging its expertise and contract vehicles to acquire IT solutions efficiently. Spending in this category has generally trended upwards over the years, reflecting the increasing reliance of federal agencies on advanced IT infrastructure, software development, and system integration to meet their missions. Contracts like the one awarded to Booz Allen Hamilton, valued at over $124M and spanning multiple years, are indicative of the substantial, long-term investments GSA facilitates in this domain. Analyzing GSA's historical spending data for NAICS 541512 would reveal trends in contract values, durations, and the types of services most frequently procured.

What are the implications of the contract's duration (2008-2018) on its relevance and value?

The contract's duration, spanning from 2013 to 2018 (with a start year of 2013 and end year of 2018, and a duration of 2008 which seems to be a typo and likely refers to the year of award or a different metric), implies a long-term engagement for Computer Systems Design Services. A contract that lasts for over five years allows for sustained support, deep integration into agency IT systems, and the development of specialized knowledge by the contractor. This can lead to efficiencies and a better understanding of the client's needs over time. However, very long contract durations can also pose risks, such as potential complacency from the contractor, difficulty in adapting to rapidly evolving technologies, and challenges in transitioning services to a new provider if needed. For a contract awarded in 2013 and ending in 2018, the technology landscape would have evolved significantly, making the relevance and value dependent on how well the services adapted to newer technological paradigms during its term.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID02130002

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $151,856,427

Exercised Options: $151,271,725

Current Obligation: $124,526,287

Subaward Activity

Number of Subawards: 101

Total Subaward Amount: $23,404,822

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline